The process of manipulating a company's earnings to make them appear worse than they truly are. Losses are expanded so that the company can mislead investors and shareholders. Big bath accounting reduces the amount of assets held by the company so that future quarterly performance will appear better than it truly is. This type of procedure is typically used during a bad year. For example, a company may elevate sales declines to a level that will help future losses appear minimal.
Related information about big bath:
- Big bath - Wikipedia, the free encyclopedia
Big Bath in accounting is an earnings management technique whereby a one- time charge is taken against income in order to reduce assets, which results in ...
- Big Bath Definition | Investopedia
The big bath is often implemented in a bad year to enhance artificially next year's earnings. The big rise in earnings might result in a larger bonus for executives.
- Big Bath - Financial Dictionary - The Free Dictionary
Big Bath. Also found in: Wikipedia, 0.03 sec. Big Bath. The practice of making poor earnings of a company, especially of a publicly-traded company, appear ...
- Big Bath Accounting Fraud
Dec 11, 2008 ... One of the hardest accounting frauds to spot is big bath accounting. When a company is doing really bad and has no chance of meeting ...
- What is big bath? definition and meaning
Definition of big bath: The process of manipulating a company's earnings to make ... Big bath accounting reduces the amount of assets held by the company so ...
- Big Bath Accounting is Alive and Well at Merrill Lynch, Citigroup and ...
Nov 8, 2007 ... In yesterday's post, I wrote about Merrill's big bath charge. Two other recent news items confirm that not much as changed since Arthur Levitt ...
- Emerald | Emerging Market Case Studies | A “Big Bath” in China ...
Title: A “Big Bath” in China: accounting and corporate governance. Author(s): Mingchuan Ren (Associate Professor at the School of Management, Fudan ...
- What Does "Big Bath" Mean?
Big bath is an accounting term that refers to the practice of a company making earnings seem less than they actually are in a particular year. By doing this in a ...